Factors When Choosing a Debt Consolidation Company
Thinking of consolidating your way back to financial stability? Your first step should be to look for the right debt consolidation company.
If you want to get your finances straight and be back in the stable financial path through debt consolidation, it is very important that you choose the right company. It is only a good consolidation company which will be able to understand your situation, improve your finances and have the ability to truly help you with your financial mess.
What is most important with choosing a good company to consolidate your debts with is doing your own research. There are a wide number of companies out there insisting that they offer the best deals in the market. Take note that no one can really tell which one is best except you. It is then your responsibility to make the right choice by comparing the services and rates being offered by the different companies in your area.
What factors must you consider when choosing a debt consolidation company? Well, first of all, you should find one that has a good track record. You can ask trusted friends or family who has had the same experience. You can also visit online forums as there are quite a number who share their debt consolidation experience online. Once you already have options in mind, your next step is to inquire and ask questions. You should be looking into companies who are ready to answer your questions with care and concern. Ask about their business history, how long they have been in the business, customer feedback and referrals, and so on. It is also a good idea to check with your local Better Business Bureau to see whether there are complaints lodged against them. If you choose your company online, make sure they actually have a physical address and verify by personally visiting them at least once.
Needless to say, you should get a debt consolidation company whose rates are within reasonable range and are within your budget. You wouldn’t want to consolidate your debts and end up in more debt. If the rates in the market are too high, you may want to consider non-profit organizations instead. You have to be forewarned against companies who charge you without even asking about your current financial situation and your particular needs. Remember that a reliable debt consolidation company will never charge you anything to check your current condition and suggest you some programs which may solve your financial problems. Reputable companies also do not charge you for quotes that are most suitable for you. This can actually be advantageous on your part when shopping around for a good company.
The best thing for you to do is to find a company that will be able to give you a tailor-made debt consolidation program which will meet your needs and be within your financial means. Try to look around for as many reliable companies as you can, then narrow your choices down to one which you think is the best and most reasonable choice. Once you have chosen your company, maximize their services and work with them. Remember that debt consolidation is an excellent way to straighten all your financial problems, but it can only work if you make the right decisions before plunging in.
Debt Consolidation Help
A person who has financial problems stand to gain through the assistance of some debt consolidation help through a credit counselor. There are many nonprofit credit counseling organizations, and also many that charge very high fees. So it is very important that you do some research on the debt consolidation company you intend to hire before actually approaching them. These debt consolidation companies offer you debt consolidation help, so it is important that you enlist their services to come out of your financial crisis.
You can get the best debt consolidation help if it is conducted face-to-face rather than over the phone or through the internet. This is because it is always better to meet a credit counselor and get all your doubts cleared about the debt consolidation loan rather than trying to read in between the lines of the online form you are told to fill. Although you can easily find financial counselors offering debt consolidation help at their local offices, you will find that your financial institution, local consumer protection agency and friends can sometimes turn out to be better sources of information and referrals. In fact, while talking to them, you will find that there are many people sailing in the same boat you are sailing in, and it would also be interesting to hear about their experiences.
With the help of the best debt consolidation help, you will be advised on how to best manage your debts and money effectively, you will be helped in developing a budget and also will be offered free educational materials and workshops. When getting debt consolidation help from the debt consolidation help organization, you have to confirm that the credit counselor offing you help is certified and trained in consumer credit, budgeting and money and debt management. When getting debt consolidation help, you want to receive help that is useful in covering your whole financial situation. It should also help you by providing you with a personalized plan that will help you solve your money problems rather than working with a standard plan that does not actually include your financial problems. This is the main reason for you to choose help from the debt consolidation organization that offers personal appointments to their clients. When discussing points with your credit counselor, you will only need about an hour of initial counseling. However, this one hour of initial counseling should be followed with follow up sessions if you have further doubts about debt consolidation help when you find it rather difficult sticking to the debt consolidation plan allotted to you.
When you go scouting amongst the number of debt consolidation organizations you find, it is very important that you get as much free information and services about the company you intend to approach, without you having to provide any details of your financial solution. Remember to avoid any company that proclaim that they give debt consolidation help, but does not provide you with any background information when you do research on the company. There are many debt consolidation companies out there that are willing to disclose information about themselves so that you are satisfied of having made an informed choice.
Debt Counseling Program
Demand for debt counseling is at a record high; 17 straight quarterly fed rate hikes, slowing home values (harder to get a debt consolidation loan), rising tuition costs, rising gas prices, bankruptcy reform… the list of consumer catalysts into debt counseling programs just seems to keep growing.
First, some startling statistics: there is over $13 trillion in consumer debt out there, and over $2 trillion of it is revolving. When interest rates rise, that revolving debt hits the consumer’s pocket book. For example, it has been estimated that over $2 trillion of mortgage debt that is based on adjustable rates (“ARMs” or Adjustable Rate Mortgages) is going to re-adjust over the next 2 years… increasing American consumer interest fees by over $50 billion! What does it mean, it may mean that you cannot afford to pay your bills, and for many people, that means credit card debt payments are too high to afford which leads to debt counseling.
Debt counseling could mean a variety of things, from a traditional debt management plan that cuts interest rates and lowers monthly payments to a more aggressive negotiated debt settlement program that attacks principal as well as interest. Make sure that you sit down and do the budget analysis and assess your monthly budget. The amount that you can contribute to paying down your debts should be the first step in evaluating your debt counseling options. If you can afford more than 2.5% of your total debt amount in a monthly payment, then credit counseling may be the best debt counseling option. If you can only afford 1.5% of your total debt monthly, then seek help from debt settlement or debt negotiation firms. If you cannot afford to make any payments, then you may want to evaluate bankruptcy in addition to your debt counseling options.
The next step in choosing a debt counseling program is to prioritize what is more important to you: your savings or your credit rating. If you just want to save the most amount of money while getting debt free as fast as possible, then debt settlement may be best. If you are looking to buy a home in the next year or two, and your credit rating is your number one concern, then you will not want to go delinquent on your bills and may want to explore a debt consolidation loan or credit counseling.
With any debt counseling program, it is important to remember that no one size fits all; make sure to shop around and find the best program and an honest and ethical company that has a solid Better Business Bureau rating before jumping in.